The UK buy-to-let market, which has been on a growth path for a while now, continued to flourish in the first half of 2015, new research from Barclays shows.
London, Birmingham and Bristol have topped the buy-to-let hotspot list, seeing the highest number of buy-to-let property purchases since the start of this year.
Greater London is a big draw for businesses, while Birmingham has attracted many investors thanks to the new HS2 train line to the capital. Bristol experienced a buy-to-let surge as a popular university city, just like Nottingham and Manchester.
Plymouth is the place that enjoyed one of the biggest jumps in buy-to-let properties acquisitions. The region’s growing economy and £90 million investment pledge from the government as part of their support for seaside towns may be the reason why Plymouth landed on place 16 from its previous position of 212 in the buy-to-let ranking.
Andy Gray, managing director of mortgages at Barclays, said:
“It’s encouraging to see home owners are still feeling confident about the rental market and view buy-to-let as a valuable way to support their finances.
“Whilst London still leads all things buy-to-let, areas like Plymouth and Peterborough show there are some great value hot spots outside the capital city that are worth investment as the economy grows.
“For those considering buy-to-let, we encourage you to speak to your mortgage advisor on what are the best options for your situation.”
| Rank (by volume of Barclays completed buy-to-let properties) Q1-Q2 | Town | Average rent (of Barclays Mortgages completed buy-to-let properties) Q1-Q2 2015 | |
| 2015 | 2014 | ||
| 1 | 1 | LONDON | £1,900 |
| 2 | 7 | BIRMINGHAM | £766 |
| 3 | 3 | BRISTOL | £877 |
| 4 | 17 | NOTTINGHAM | £639 |
| 5 | 18 | MANCHESTER | £693 |
| 6 | 13 | READING | £1,169 |
| 7 | 47 | LEEDS | £703 |
| 8 | 6 | SOUTHAMPTON | £1,067 |
| 9 | 50 | PETERBOROUGH | £649 |
| 10 | 19 | SLOUGH | £1,045 |
| 11 | 48 | GLASGOW | £601 |
| 12 | 5 | ILFORD | £1,252 |
| 13 | 4 | HARROW | £1,402 |
| 14 | 35 | EDINBURGH | £923 |
| 15 | 8 | CROYDON | £1,262 |
| 16 | 212 | PLYMOUTH | £808 |
| 17 | 12 | ENFIELD | £1,268 |
| 18 | 79 | SWINDON | £681 |
| 19 | 62 | LUTON | £754 |
| 20 | 28 | MILTON KEYNES | £873 |
Landlords’ priorities
Barclays Mortgages survey of UK buy-to-let homeowners found that Good structural conditions, strong transport links and capital growth prospects are what most appeals to prospective landlords.
What they are looking for inside the house is an interior requiring minimal renovation. Whilst money is at the forefront of most property owners’ minds when purchasing a home, trust-worthy and reliable tenants came a close third as priorities for UK buy-to-let owners.
The most popular property for purchase remains a traditional lived-in house but there is a growing trend towards purchasing council and ex-councils flats. The research found that over half (52 per cent) of all London buy-to-let owners are buying this kind of property.
Three-quarters of landlords choose to purchase their property in order to invest in their family’s future, including retirement and supplementing university fees.
Landlords’ wealth
Over 75 per cent of buy-to-let properties owners own more than one property, with those in Bradford and Glasgow leading the way, averaging a huge eight properties per person.
Summer Budget not a big worry
Despite planned tax relief cuts to buy-to-let properties announced in the Summer Budget, only one in ten (9 per cent) are planning to sell their buy-to-let property and under a quarter (23 per cent) would consider the idea.
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